LONG BEACH, Calif.--(BUSINESS WIRE)--Jun. 17, 2013--
Molina Healthcare, Inc. (NYSE: MOH) today announced that, through its
wholly owned subsidiary, Molina Center LLC, it has successfully
completed a sale and lease back transaction with the dedicated net lease
group of Angelo, Gordon & Co (AG) for $158 million. Under the terms of
this transaction, Molina Healthcare has sold to AG its principal
executive offices in Long Beach, California, as well as an office
building in Columbus, Ohio, that houses the principal health plan
operations of Molina’s wholly owned subsidiary, Molina Healthcare of
Ohio.
“We continue to pursue the many opportunities that are open to us today
in order to position the Company for long-term success,” said J. Mario
Molina, M.D., chief executive officer of Molina Healthcare, Inc. “At our
Investor Day on February 21, 2013, we talked about alternative financing
options, including a potential sale and lease back transaction.
Consistent with our long-term capital plan, this transaction unlocks
additional capital, allowing Molina Healthcare to fund future growth
initiatives while remaining committed to our mission of serving
low-income families and individuals.”
As a part of the agreement, Molina Healthcare has entered into long-term
leases for both real properties under which AG will be the landlord and
Molina will be the tenant. In 2011, Molina Healthcare purchased the Long
Beach, California, property that consists of two conjoined 14-story
office towers on approximately five acres of land. The building houses
the Company’s corporate headquarters and its California health plan
subsidiary, Molina Healthcare of California. The Ohio property was
acquired in 2012.
About Molina Healthcare, Inc.
Molina Healthcare, Inc., a FORTUNE 500 company, provides quality and
cost-effective Medicaid-related solutions to meet the health care needs
of low-income families and individuals and to assist state agencies in
their administration of the Medicaid program. Our licensed health plans
in California, Florida, Michigan, New Mexico, Ohio, Texas, Utah,
Washington, and Wisconsin currently serve approximately 1.8 million
members, and our subsidiary, Molina Medicaid Solutions, provides
business processing and information technology administrative services
to Medicaid agencies in Idaho, Louisiana, Maine, New Jersey, and West
Virginia, and drug rebate administration services in Florida. More
information about Molina Healthcare is available at www.molinahealthcare.com.
About Angelo, Gordon & Co.
Angelo, Gordon & Co. was founded in 1988 and, with its affiliates, has
approximately $25 billion under management. Currently, the firm’s
investment disciplines encompass four principal areas: (i) distressed
debt and leveraged loans, (ii) real estate equity and debt and net
lease, (iii) private equity and (iv) hedged strategies. Angelo, Gordon &
Co. employs over 280 people, approximately half of whom are investment
professionals, and is headquartered in New York, with associated offices
in Chicago, Los Angeles, Washington, London, Amsterdam, Seoul, Hong
Kong, Tokyo and Sydney. More information about Angelo, Gordon & Co. is
available at www.angelogordon.com.
Source: Molina Healthcare, Inc.
Molina Healthcare, Inc.
Investor Relations:
Juan José
Orellana, 562-435-3666
or
Public Relations:
Sunny Yu,
562-901-1039
